It has been argued that the information technology age has greatly increased productivity and potential output. If this is true:
A. the long-run real interest rate is lower as a result.
B. we should have seen lower short-run interest rates than we have seen.
C. nominal long-run interest rates should have increased.
D. the long-run real interest rate is also higher as a result.
Answer: A
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A consumer notices that the price of a bottle of SpringFresh perfume increased from $30 to $40. Which of the following would most likely cause this increase?
a. a significant increase in minimum wage b. a more efficient bottling system c. stricter product inspections d. a large advertising campaign
American and Japanese workers can each produce 4 cars a year. An American worker can produce 10 tons of grain a year, whereas a Japanese worker can produce 5 tons of grain a year. To keep things simple, assume that each country has 100 million workers. Which country has an absolute advantage in producing cars? In producing grain?
a. U.S in cars; Japan in grain b. Japan in cars; U.S in grain c. U.S in cars; U.S in grain d. Neither in cars; U.S in grain
Economists expect the relationship between consumption and disposable income to be
A. unpredictable. B. transitory. C. fixed. D. inverse E. stable.
Which of these results from the separation of ownership and management in large publicly traded corporations?
A. Corporate managers have stronger incentives to rather quickly transfer control of the firm to more informed management teams. B. Corporate managers have stronger incentives to rather quickly transfer control of the firm to less informed management teams. C. Corporate managers have weaker incentives to transfer control of the firm to more informed management teams. D. Corporate managers have weaker incentives to transfer control of the firm to less informed management teams.